Jindal Saw like many other metal counters has been facing rough weather for a pretty long period now. After topping out in late 2010 at 235, the stock had lost nearly 85% of its value when it bottomed out in August 2013. The stock had been more or range bound till this month when in line with the moves seen in many mid and small cap stocks, Jindal Saw too has appreciated by around 22% till date.
Today’s close is just below its 200 day EMA which would be the first barrier to cross. As the chart below shows, this is just the first in a series of hurdles it has to cross before we can say its clearly out of the woods (Bearish to Bullish phase change).